Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries
This paper aims to assess the effectiveness of inflation targeting policy in emerging economies during an economic crisis, particularly the 2007 financial and economic crisis. Thus, considering pre-crisis and crisis periods, an econometric model based on the difference-in-differences method (DID) w...
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| Format: | Article |
| Language: | English |
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The John Paul II Catholic University of Lublin
2024-12-01
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| Series: | Przegląd Prawno-Ekonomiczny |
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| Online Access: | https://czasopisma.kul.pl/index.php/ppe/article/view/17128 |
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| author | Souhila Bouhmidi Hamza Fekir Ismail Amani |
| author_facet | Souhila Bouhmidi Hamza Fekir Ismail Amani |
| author_sort | Souhila Bouhmidi |
| collection | DOAJ |
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This paper aims to assess the effectiveness of inflation targeting policy in emerging economies during an economic crisis, particularly the 2007 financial and economic crisis. Thus, considering pre-crisis and crisis periods, an econometric model based on the difference-in-differences method (DID) was adopted. The sample consists of twelve inflation-targeting countries, the test group, and twelve non-targeting countries, the control group. The model was estimated using the EGLS method on panel data. The results show that inflation-targeting emerging countries have less control over prices during crisis than emerging countries without inflation-targeting policy.
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| format | Article |
| id | doaj-art-4009c6c39df145caa78979771009c387 |
| institution | Kabale University |
| issn | 1898-2166 2720-6734 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | The John Paul II Catholic University of Lublin |
| record_format | Article |
| series | Przegląd Prawno-Ekonomiczny |
| spelling | doaj-art-4009c6c39df145caa78979771009c3872025-01-21T12:16:05ZengThe John Paul II Catholic University of LublinPrzegląd Prawno-Ekonomiczny1898-21662720-67342024-12-01410.31743/ppe.17128Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging CountriesSouhila Bouhmidi0Hamza Fekir1Ismail Amani2University of Oran 2 Mohamed ben AhmedUniversity of Oran 2 Mohamed ben Ahmed University of Oran 2 Mohamed ben Ahmed This paper aims to assess the effectiveness of inflation targeting policy in emerging economies during an economic crisis, particularly the 2007 financial and economic crisis. Thus, considering pre-crisis and crisis periods, an econometric model based on the difference-in-differences method (DID) was adopted. The sample consists of twelve inflation-targeting countries, the test group, and twelve non-targeting countries, the control group. The model was estimated using the EGLS method on panel data. The results show that inflation-targeting emerging countries have less control over prices during crisis than emerging countries without inflation-targeting policy. https://czasopisma.kul.pl/index.php/ppe/article/view/17128inflation targetingeconomic crisesdifference in differencepanel dataemerging country |
| spellingShingle | Souhila Bouhmidi Hamza Fekir Ismail Amani Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries Przegląd Prawno-Ekonomiczny inflation targeting economic crises difference in difference panel data emerging country |
| title | Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries |
| title_full | Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries |
| title_fullStr | Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries |
| title_full_unstemmed | Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries |
| title_short | Effectiveness of Inflation Targeting Strategy in Times of Financial Instability in Emerging Countries |
| title_sort | effectiveness of inflation targeting strategy in times of financial instability in emerging countries |
| topic | inflation targeting economic crises difference in difference panel data emerging country |
| url | https://czasopisma.kul.pl/index.php/ppe/article/view/17128 |
| work_keys_str_mv | AT souhilabouhmidi effectivenessofinflationtargetingstrategyintimesoffinancialinstabilityinemergingcountries AT hamzafekir effectivenessofinflationtargetingstrategyintimesoffinancialinstabilityinemergingcountries AT ismailamani effectivenessofinflationtargetingstrategyintimesoffinancialinstabilityinemergingcountries |